Firefox File Edit View History Bookmarks Tools Window Help 7

Firefox File Edit View History Bookmarks Tools Window Help ???75% D. Wed 3:44 PM Atika Ishtiaq a E Connect Chegg Study| Guided Solution Accounting Hw: Marcelino Co.\'s × Orange: Connect-Managerial × https:/newconnect.mheducation.com/flow/connect.html Search Ch 02 P-2-1A 6 Help Save & Exit Submit Saved Check my work Required information Problem 2-1A Production costs computed and recorded; reports prepared LO C2, P1, P2, P3, P4 The following information applies to the questions displayed below. Part 1 of 4 Marcelino Co.s March 31 inventory of raw materials is $90,000. Raw materials purchases in April are $530,000, and factory payroll cost in April is $382,000. Overhead costs incurred in April are: indirect materials, $56,000; indirect labor, $25,000; factory rent, $39,000; factory utilities, $24,000; and factory equipment depreciation, $61,000. The predetermined overhead rate is 50% of direct labor cost. Job 306 is sold for $645,000 cash in April. Costs of the three jobs worked on in April follow. points eBook Ask Job 306 Job 307 Job 308 Print Balances on March 31 Direat materials Direat labor Applied overhead s 29,000 36,00o 19,000 9,500 25,000 12,500 Costs during April 131,000 104,000 215,000 $100,000 101,000 Direct materials Direct labor Applied overhead Status on April 30 152,000 Pinished (sold) PinishedIn (unsold) procss Problem 2-1A Part 1 2 Graw Prev 1 3 4 of 4 Next>

Solution

1.

2.

3.

4.1 Gross Profit: $265000

Gross profit = Sales - Cost of goods sold = $645000 - ($353500 + $26500) = $645000 - $380000 = $265000

4.2

	Job 306	Job 307	Job 308	April Total
From March
Direct Materials	29000	36000		65000
Direct Labor	25000	19000		44000
Applied overhead	12500	9500		22000
Beginning goods in process	66500	64500		131000
For April
Direct Materials	131000	215000	100000	446000
Direct Labor	104000	152000	101000	357000
Applied overhead	52000	76000	50500	178500
Total costs added in April	287000	443000	251500	981500
Total costs (April 30)	353500	507500	251500	1112500
Status on April 30	Finished (sold)	Finished (unsold)	In process
April 30 cost included in:	Cost of goods sold	Finished goods inventory	Work in process inventory